Senior City of London Bankers have encouraged Chancellor Rachel Reeves to mitigate plans for the abolition of non-domicilated tax status, so that the policy is asked to move foreign employees.
During a breakfast meeting in No. 11, representatives of major financial service providers, including BlackRock, Schroders, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley, expressed concern about the impact of ending the non-DOM regime on the competitiveness of the UK .
Non-domicilated status, with which the British residents can be taxed on the basis of oversides instead of worldwide income, will end on 6 April. Reeves made a small concession in January and granted a simplified ‘temporary repatriation facility’ that offers a discount on tax rates for the introduction of certain funds into the UK. Bankers, however, warn that changes in inheritance tax on existing trusts, in combination with the overall removal of non-DOM benefits, the risk that the departure of ultra-rich people will accelerate.
Last data from analysis company New World Wealth and Investment Advisers Henley & Partners show net 10,800 millionaires that left Great Britain last year, a greater outflow than somewhere except China. Seventy-eight centi millionaires and 12 billionaires also left in 2024, according to the report.
Despite these statistics, Reeves has not shown any signs of backtracking and insisted that the reforms will yield an “internationally competitive” tax system. The office for budget responsibility estimates that the relocation can generate an extra £ 33.8 billion over the next five years.
During the meeting, the figures in the industry also discussed the simplifying of ISAs to stimulate domestic investments in British shares. In a separate announcement, Reeves said that Great -Britain will switch to a ‘t+1’ settlement cycle for effects, in line with large markets such as the United States. “Accelerating the scheme of transactions makes our financial markets more efficient and internationally competitive,” she added.
The treasury refused to give specific comments on the non-DOM debate, but says that it is committed to effectively guaranteeing reforms for both companies and taxpayers.